Jeremy, Author at ATG Title

Hard Money vs. Private Money Lenders – What’s the Difference?

February 10, 2021 By Jeremy

Finally, you found the property you’ve been looking for and the owner is ready to sell, but you don’t have the cash on hand to buy it. That is when you probably came across both hard money lenders and private money lenders. Both can fund your investment property but each serves a different purpose and has unique risks.

In this post, you’ll learn the differences, similarities, and everything you need to make the right choice to fund your project.

What is the Difference Between Hard and Private Money Lenders?

Hard money lenders are companies that loan money to real estate investors to acquire investment properties based on the potential gain from the buying price and the selling price.

Private money lenders are companies or individuals that offer a loan based on their own criteria and it could be simply to help you get started in your career. Private money lenders can be a friend, a family member, or even someone who sees your project as a good investment vs. being a licensed company or organization.

What do Hard & Private Money Lenders Have in Common?

Both hard money lenders and private money lenders are similar in that there are no government restrictions in the USA (as of 2/10/2021).

In addition to that they both have benefits including: [Read more…]

How to Wholesale Real Estate from Start to Finish

February 2, 2021 By Jeremy

Are you ready to make some money in real estate without having to flip a house or be a landlord? Then learning how to wholesale real estate properties may be for you. It’s a tactic many investors take advantage of, and for a good reason.

Wholesaling real estate is an excellent way to make money without having to invest a ton of cash or flat out buy a property. But there are also risks.

But don’t worry; we’re not here to pull punches and keep any tips to ourselves. We’re here to share with you the ins and outs of getting started so that you can begin to grow your portfolio and your bank account.

What You Need to Get Started

Wholesale real estate can be tricky. The whole process takes a keen eye, understanding the process and the market, and some connections.

While it is low-risk compared to other forms of entering into real estate investing, not being prepared is a surefire way to end up with a property you didn’t expect to purchase. So, before we get into the process steps, we should cover the groundwork.

The first question to cross your mind is likely going to be whether or not you need a license. The short answer is no. While it’s certainly helpful, it is not necessary.

However, a license will give you access to the MLS that shows listings before reaching the public. Considering you are looking for properties listed below market value, that’s a powerful tool to have.

Regardless of whether you have a license, networking is also an essential tool. Your goal here is to establish connections with industry professionals whereas a Realtor would want to make these connections in addition to home buyers and sellers.

Lawyers, lenders, title companies, other agents, and even movers are sources from which you can gather information on homes going up for sale. They can also help point you in the direction of buyers who are just as essential to building connections.

But networking will only get you so far. You also need to develop a comprehensive understanding of the market. [Read more…]

Dual Agencies: The Benefits & Risks You Take

January 27, 2021 By Jeremy

After listing a home for a seller, you’ll speak with many buyers who are interested in the property. In some cases you’ll likely meet a buyer who’s serious about the transaction but doesn’t have an agent to represent them. There is a very likely chance they’ll ask you for advice and to also be their agent.

This scenario offers you the potential to take part in what is known as dual agency. Though many agents may be aware of it, they may not fully understand it. We’re here to explain what it is and whether or not you should avoid it.

What are Dual Agencies?

By definition, dual agencies or a dual agent is when the same real estate agent or two agents from the same brokerage represent both the home buyer and the home seller.

The scenario above refers to when a single agent represents a buyer and seller at the same time. For this to occur, both parties have to agree that it is ok. This is the far more concerning form for many because a single agent stands to collect the commission, usually split by two. Many believe this aspect can influence their actions in either role and often calls for ethical concern.

Another form of dual agency is when two agents from the same brokerage represent both parties. [Read more…]

What a Listing Agent is and Who They Work For

January 20, 2021 By Jeremy

Whether you are getting ready to buy or sell a home, you’re going to come across the terms “listing agents” and “buyer’s agents.” And though many may believe that real estate agents all have the same job, there is a stark difference between the two.

We’re here to talk about what precisely a listing agent is. Below you will learn all about the role both people play, what their duties are, and why they are essential to the process of selling a property.

What is a Listing Agent?

By definition, a listing agent is a person that represents the seller in a real estate transaction. Their job is to list the home and help the seller find a buyer in basic terms. A listing agent works to get the seller as much money as possible for their property as quickly as they can.

A listing agent’s work sounds simple, but there’s a lot more to it than taking a few pictures and making an ad for your property. Their involvement with the selling process is far more intimate. They handle the majority of the process for you.

The Roles and Responsibilities of Listing Agents

One of the first things a listing agent does is sets the asking price of your home. Not having any emotional attachment to the house helps them take an unbiased stance to make a fair asking price. But, they aren’t there to let someone rip you off either. Remember, a listing agent wants to help you make as much money as possible, partly because it helps increase their commission. [Read more…]

Realtor Vs. Real Estate Agent: What’s the Difference?

January 12, 2021 By Jeremy

Whether you’re looking to buy or sell a property, or assist people in buying or selling property, you’re likely trying to figure out what the difference between a real estate agent and a realtor is.

Although the terms are used interchangeably by many, there is a significant difference between them. Knowing the difference can be a defining factor of your buying and selling experience, and is an absolute must for those taking on a new profession in the real estate industry.

What’s the difference between a real estate agent and a realtor?

The difference between a real estate agent and a realtor is that a realtor is an agent that is an active member of the National Association of Realtors (NAR) and a real estate agent does not have to be. While both have a real estate license, a realtor must adhere to a higher level of standards and ethical duties than an agent.

Put simply, becoming a realtor is the next step to take after becoming a real estate agent for many career professionals.

Real Estate Agent: A professional who assists in the buying or selling of properties. The requirements of becoming a real estate agent vary by state. State requirements typically determine the necessary coursework one must complete before taking the exam to obtain their real estate license. All agents must be knowledgeable in local, state, and national laws to obtain their license. After completing the course and obtaining their license, agents must continue their education and renew their licenses every two years.

Realtor: A real estate agent that is an active certified member of the National Association of Realtors. To become a realtor, an agent must have a valid real estate license and an impeccable professional conduct record. Members of the NAR are required to take and pass a code of ethics class and follow an extensive Code of Ethics to protect the association’s reputation.

Becoming a member has the benefit of making an agent more desirable to potential clients due to Realtors’ excellent reputation. Furthermore, the organization works to protect the member’s interests. [Read more…]

REO Foreclosures – Worth the Risk Or a Hard Pass?

January 5, 2021 By Jeremy

If your property leads funnel has dried up, and advertising simply isn’t working, you may consider investing in a foreclosed property. If that sounds like you then you’ve likely come across the term REO foreclosures and heard that they are a great way to boost your investment portfolio. But that also leads to questions about the sustainability of REO foreclosures as a way to grow your lead funnel and as a stable business model.

Are these as risky as a traditional foreclosure? Is there a difference, and should you take the chance of investing in one? We’re here to explain what these types of properties are so that you can make the call.

Below you will find questions and answers related to REO foreclosures to help you make a decision on if they are a good way for you to boost your lead funnel and scale your real estate investing business.

What is an REO foreclosure?

REO means Real Estate Owned and the term REO Foreclosure refers to a piece of property that is being sold by a bank or lender. A property becomes listed as an REO when it fails to sell at a traditional foreclosure auction. The bank reclaims the property and lists it on the MLS or other conventional real estate listing sites.

How do REO foreclosures work?

The length of a foreclosure process can vary greatly, and the home usually goes through many stages before it lists as an REO foreclosure. For an in-depth look at some of the foreclosure process stages, you should refer to our guide on the differences between short sale pre-foreclosure and foreclosure.

After the property is taken back by the lender, the lender will try to sell the property at a public auction. If no offer is made during the auction or meets the lender’s needs, they will reclaim the property and list it as an REO. [Read more…]

How the BRRRR Method Works in Real Estate Investing

December 22, 2020 By Jeremy Leave a Comment

You don’t necessarily need loads of upfront cash to have success in real estate investing. An effective strategy is far more critical. The BRRRR Method for real estate investing is a popular but mostly unknown strategy because it allows you to start small and work your way toward bigger and better goals.

Many successful real estate investors begin with the BRRRR investing strategy and climb their way to the top. But that doesn’t mean they don’t still use it once they get there.

What is the BRRRR Method?

BRRRR is an acronym for Buy, Rehab, Rent, Refinance, Repeat. The BRRRR Method’s goal is to end with an increase in the value of a property so that you can return your initial investment and begin again while collecting cash from tenants.

An example of success with the BRRRR Method is the ability to refinance a rental for $130,000 when your total investment is just $100,000. You then use the refinancing money to cover investment costs while collecting rent monthly.

You then repeat to generate another property you can continuously collect rent from. Each time you repeat, your passive income and net worth rapidly increase.

How does the BRRRR strategy work?

The process begins with buying a property that needs work with a low listing price. You’ll want to find a property that needs some updates but not a total overhaul.

In most cases, your initial property investment will be funded by hard money through a short-term lender. No matter where the money comes from, you need to make sure that you have enough to cover the property’s cost and renovations. [Read more…]

What is an Escalation Clause in Real Estate?

December 15, 2020 By Jeremy Leave a Comment

When making an offer on a home, you want to stay under the maximum amount you’re willing to pay but high enough to outbid other sellers. You might also want a way to track other offers so that you can continuously outbid them to increase your chances of making the deal. This is what an escalation clause does, which is an extremely effective tactic in the right situation.

What is an escalation clause in a contract?

An escalation clause is an addendum submitted in a multiple-offer situation to improve the odds that you will outbid other buyers.

For example, you might make an offer on a property for $325,000, but you can include an escalation clause that states you are willing to pay a maximum of $335,000 if a bidding war begins.

The clause also states that your offer will increase in set intervals to counter other offers up to the max offer, or escalation cap. [Read more…]

What Does Tenancy by the Entirety Mean For Couples?

December 8, 2020 By Jeremy Leave a Comment

Deciding how to take ownership is a critical step when purchasing real estate. It determines how your name will appear on the title and how the property is processed and protected. In some states, married couples can take a unique form of ownership known as Tenancy by the Entirety.

What is Tenancy by Entirety?

Tenancy by the Entirety (also known as Tenants in the Entirety) is a form of ownership that legally recognizes the married couple as a single entity. In doing so, spouses hold equal ownership of the property, which arrives with many perks.

The driving concept of Tenancy by the Entirety is to protect either spouse’s interest in a piece of property from events that exclusively involve the other. The most notable form of protection it offers is transferring full ownership to a surviving spouse when the other dies without probate.

But the advantages are numerous, and that is precisely why many individuals view it as the best form of ownership for married couples to pursue when available to them. Here are the key benefits of this form of ownership:

One spouse cannot sell the property without consent from the other.
If one spouse dies, the other assumes full ownership without probate.
Debt collectors cannot put liens on the property to collect a debt from a single spouse.

And while this form of ownership has its advantages, some setbacks may force one to consider other options. As an example, many may view sharing equal ownership of a property as more of a drawback than an actual benefit. [Read more…]

What is House Hacking in Real Estate?

December 1, 2020 By Jeremy Leave a Comment

If you’re a beginner investor and are looking to save money on your initial investment, house hacking may be the way to go. As you can guess by the name, it is a tactic that seems too good to be true—but it’s a genuine practice. Here’s how you can use house hacking strategies to kickstart your real estate investment career.

What is house hacking?

House hacking is a real estate investment strategy where the investor rents out a portion of their primary residence so that rental payments cover the costs of the mortgage and expenses.

In most cases, the investor purchases a multi-family property and lives in one unit while renting out the others. That is why it can be highly desirable for many because even though you share a property with others, you still have the privacy of an entire unit. [Read more…]